Maruti Suzuki: Eeco-nomy van Sayantani Kar / Mumbai January 5, 2010, 0:26 IST With the Versa laid

to rest, Maruti Suzuki is ready with another van option called the Eeco that can seat five to seven people. Set to be unveiled at the Auto Expo in New Delhi, it is likely to be priced below Rs 400,000, and will come with air-conditioning and the option to choose from six colours. The Eeco would become Maruti Suzukis second car after the Omni in what it calls the C-segment. The segment is of interest to us because it has posted consistent growth over the years (CAGR of 12 to 14 per cent over the last five to six years), says Maruti Suzuki Chief General Manager (marketing) Shashank Srivastava. Click here to visit SME Buzz Also Read Related Stories

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- Future Group: Eyeing new horizons - Few companies can afford to miss Delhi Auto Expo - Maruti crosses 1 lakh retail sales in Dec 2009 - Domestic auto sales grow 49% in December - Expo-sure! - Maruti's December sales zoom 50% The company found that Omni owners often replace their vehicle with another Omni rather than upgrade to another model. Srivastava claims a market for 6,000 to 8,000 such vehicles per month. This is where the Eeco fits in. Maruti Suzuki has not had a smooth run with its vans. As a passenger car, the Omni is now mostly relegated to lower-tier towns and semi-urban areas. In urban markets, it is used as a taxi or load-carrier. The Versa, Srivastava points out, did not meet the needs of the market for such a car, which led to its phase-out. We had positioned the Versa as offering luxury only to realise that the buying criteria of the audience were quite different, he adds.

With the Eeco, Maruti Suzuki wants to set things right, the overruling criterion being affordability (its name derives from economical). It will be positioned as an upgrade from the Omni in the urban markets value for money (with low cost of ownership), more spacious, creature comforts such as AC and a more powerful engine (73 bhp in contrast to the Omnis 30 bhp). Its 1,200-cc engine is smaller than the Versas 1,300-cc engine, but is more efficient. Even the transmission and suspension are different enough to silence sceptics who say that the Eeco is merely the Versa with a facelift. However, by way of looks, the category of vans does not leave much scope to alter the boxy look, though you can maximise space, says Srivastava. But the Eeco could face competition soon, that too from unlikely rivals. Sub-one tonne truck-makers such as Tata Motors, Bajaj Auto and Mahindra & Mahindra have plans to come out with passenger versions of their load-carrying vehicles. These could snatch the Eecos market in the commercial space. Such vehicles would appeal to commercial drivers who are willing to compromise on passenger comfort during travel. However, the Eeco could become stronger in the long run with taxi drivers concerned more about comforts such as an AC in their vehicle, says Srivastava. Maruti is not banking on just upgrades from the Omni. There are consumers from the A2 segment (small cars such as the Zen Estilo and Santro) who will opt for the Eeco because of the capacity and comforts it provides at the given price, points out Srivastava. Maruti Suzuki is hopeful that consumers who look for space but do not want to shell out large sums to buy a Toyota Innova or an SUV might opt for the Eeco. Will the Eecos features such as air-conditioning and a refined engine cut ice in rural areas? Since it has not done well with its previous urban van, the company is keeping its fingers crossed.

Maruti Suzuki Eeco: One for the family By Antara Ghosal, afaqs!, New Delhi, February 08, 2010 Section: News Category: Advertising

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Maruti Suzuki will shell out Rs 15-20 crore to market its new car, Eeco, which is priced at Rs 2.59 lakh and targets users of A2 segment cars and other Omni users who are keen on upgrading their vehicles

Is it a higher version of Omni or a lower version of Versa? Is it a family car or a trader's vehicle? Does it cost Rs 3 lakh or is it worth Rs 4 lakh? Speculation was rife ever since Maruti Suzuki unveiled its plans to launch an economic car in the C-segment. However, with the Eeco finally hitting the market and making its communication debut, it seems to be the end of wagging tongues. The Eeco is Maruti Suzuki's second car after the Omni in its C-segment. It has a starting price of Rs 2.59 lakh and is available in two versions, with seating capacities of five and seven passengers, respectively. The car has a fuel efficient 1200 cc engine and comes in six different colours.

Explaining the reasons for coming out with yet another van, Shashank Srivastava, chief general manager, marketing, Maruti Suzuki remarks that there is a huge demand for van type vehicles in the market, adding that there are two categories of customers who opt for vans. One category needs a powerful, fuel efficient business vehicle, which must be within their budgets and may or may not be very comfortable. The other lot yearns for a spacious, comfortable family car with a powerful engine but compromises with an A2 segment car such as the WagonR or Santro due to the cost involved. "Eeco is designed to serve both the categories," Srivastava says. Also, the company has found that Omni users often replace their vehicles with another Omni, rather than going for a new model. Srivastava claims 56 per cent of repurchase in this segment. He says that this is where the Eeco, with its flexibility and utility, will step in.

"We understand that there will be cannibalisation to some extent in the segment but we will try to guard against it and increase the number of our overall customers," Srivastava tells afaqs!. "Already, there is a market for 7,000 to 8,000 such vehicles per month. Now, with Eeco, we are expecting the numbers to touch the 11,000-12,000 mark."

With the recent phase-out of the Maruti Versa, another microvan in the same segment, there were perceptions that the Eeco is a substitute for the model. However, executives at Maruti Suzuki shrug off such assumptions. Srivastava categorically states that the "Eeco is not a replacement for the Versa. It is a new model with a new engine, a different transmission and suspension system and a different seating arrangement. The only thing that one may find similar is the 'looks', that too because vans cannot look any different. Vans, all over the world, have the same 'boxy' look." Maruti Suzuki has elaborate plans to position the Eeco in a way such that it maintains individuality and succeeds in attracting its TG (target group). It is being touted as an upgrade of the Omni, which has value for money, spacious interiors and useful features such as air conditioning and a more powerful engine. The aim is to showcase both the aspiration factor and the ease of usage. At a time when the Omni is being used as a business vehicle in most urban markets, the Eeco is being positioned as a family car. The positioning statement, 'Happiness family size', reinforces the claim. "Eeco is being projected as a family car primarily to woo the A2 segment car users, our prime TG (target group), who actually need a big spacious car for their families but do not have much choice because of the expensive options available." The company is spending Rs 15-20 crore to market the Eeco. About 80-85 per cent of this amount is allocated to ATL (above the line) activities, which include its presence on television, radio and print. The rest is to be spent on BTL (below-the-line) activities, which the company is admittedly very serious about, particularly in lower-tier towns and semi-urban areas. For customers in smaller cities, the company shall carry out road shows and showcase the model in different corporate offices and call centres. When it comes to other car models, Maruti Suzuki pays attention to digital marketing in particular, spending about Rs 8 crore in the online space. However, for the Eeco, it does not have any such plan at the moment. "We are just establishing the brand. We will plan further only after understanding the customers' reaction," adds Srivastava. The creative insight Conceptualised by Dentsu Creative Impact and produced by Keroscene, the television campaign establishes the Eeco as a family car, cut out for the great Indian joint family in terms of its spacious interiors and luxurious features. A funny quirky family, especially crafted for the campaign, introduces the car to the audience in the backdrop of its daily life situations. Incidentally, all the members of the family are popular characters of different comedy shows on television, which makes the TVC look like an episode of a sitcom. Also, there is an animated dog, Kartoon, in the family which, with its unique character, adds to the overall comic banter of the family. The campaign broke in the form of a 20 second trailer, which introduced the Eeco to the viewers and showed them a glimpse of the members of the Eeco family. This has been followed by a 45 second launch film, where the car comes home and viewers get introduced to the Eeco family, along with the quirks of the various family members. The launch film will probably be followed by several other TVCs taking forward the story of the Eeco family.

The brief given to the agency was to create a communication for the Eeco which revolves around a family and a slice of their life (situations such as holidays, picnics, weddings and receiving guests). The idea was to make the car an integral part of the family and thereby create a buzz for the brand through relatable situations and unique executions.

According to the ad agency, since the Eeco is a family car, the campaign thought had to revolve around a family. "We tried making the family as unique as possible, to make it different. It was also important to ensure that the artists we use already have an established personality and a mass appeal which is relatable across India," explains Harish Arora, executive creative director, Dentsu Creative Impact. This was achieved by bringing together some of the most popular comedians and veteran artists across generations and genres. The humour element was further enhanced by the addition of an animated pet to the family. For the record, Maruti Suzuki claims to have received almost 80,000 enquiries for the Eeco this month, followed by a booking of 6,000 vehicles; its retail delivery has crossed the 3,000 mark and another 3,000 is in the waiting.

Maruti has launched a new Multi Purpose Vehicle - Eeco. Eeco is the rebirth of the Late Maruti Versa. Versa was a big flop despite the high profile celebrity endorsements from Amithabh and Abhishek Bachchan. Maruti messed up that

practical car with a ridiculous pricing.

And what a way to come back.

Eeco is built in the same platform of Versa. The brand has the famed KB series of engine that powers the new Maruti offerings like the Ritz. The company also squeaked the exteriors of the old Versa, discarded the high roofing and added little more graphics in its new avatar.

More than anything else, it is the price that makes Eeco a potential winner in the ever value conscious Indian market. Priced from Rs 2,60,000 - Rs 3,10,000, the brand comes in a mouth watering price . At this price,Eeco is a winner from the word " Go".

Maruti Eeco fills an important gap in the automotive market. There exist a need for a entry level vehicle that can carry a large family . The small cars can never satisfy that need. Infact most of the cars are ideal for a family size of 4. Eeco is fulfilling that need and that too at a irresistible price.

Eeco is priced at a premium to Omni. Omni , although found takers in the Indian market suffered because of concern of security and lack of comfort. The future of Omni is bleak since the van cannot be fitted with A/C and A/C is becoming a part of the expected product.

Eeco offers all these comforts. It has an A/C variant and comes in 7 seater & 5 seater offerings. For a large family , Eeco makes immense practical sense. Backed by Maruti reliability, Eeco is expected to boost up this new segment of entry level MPVs. Eeco will be popular both at rural and urban markets.

I expect this brand to create a new segment of entry level MPV . Eeco will definitely cannibalize Alto, Omni and to a certain extent Wagon- R by luring large families into it. But more than the limited cannibalization, this is a product that Indian families were waiting for. The predicted success of Eeco will also open up a new market segment for

comfortable mini vans. Now we have only have such large carriers at the premium segments like Innova. Eeco has the potential to disrupt the market structure . Most car makers assume that the typical family structure in India is of the size 4 and thus turning a blind eye towards many large families. Eeco can change the way automakers look at this segment .

The brand has the tagline " Happiness , Family Size " . Eeco is running a tvc across various channels. The ad is very basic and nothing much to talk about. It does't need a highly creative ad for such a wonderful offering.

The only factor that Eeco will have to deliver is the promise. If Eeco as a product performs on parameters like comfort, A/C cooling, safety, stability and mileage, it is a winner.

Related Brand Maruti Versa

Labels: automobile brands, Maruthi, New Product Launch Save to del.icio.us Digg This! Stumble It! Subscribe to this feed P OSTE D B Y HARI SH B A T 7: 50 P M

GREAT MARKETING STORIES Accenture : High Performance , Delivered Alpenliebe : From the Alps Amul : The taste of India : Utterly delicious too.... Appy Fizz : Cool Drink To Hang Around Asian Paints: Every Color Tells a Story Axe : The Axe Effect

Bajaj Pulsar : Definitely Male Band-Aid :Continuous Care Body Shop : Profit With Principle Boost : Is The Secret Of Our Energy Bournvita : Do You Have Bournvita Confidence Bru : Happiness Begins with Bru Center Shock : Hilake Rakh De Coffy Bite : Coffee or Toffee Colgate Dental Cream : ye hai hamari suraksha chak... Colorplus : consistency pays Dove : The Mildest One Fair & Lovely : Chand ka Tukda Fastrack : How many you have ? Frooti : Fresh N Juicy Funskool - Welcome to the World of Toys ! WoodLand : Are you a Woodlander? Zodiac : Finest Quality Shirt Makers 7 COMMENTS: Saravanan V R said... But without the diesel option which is very important for Indian consumers, this may fail as an MPV. Also if the right positioning is not done, Eeco might become a Maxicab... 11: 1 7 P M

RAKESH KUMAR said... CAN THE SEATS BE MORE COMFORTABLE IN THE SAME PRICE BAND, CAN THE AC FACILITY BE FITTED IN SEVEN SITTER ALSO AS IT IS IMPECCABLE NEED AND WILL IT BE AVAILABLE IN THE CSD FOR MILITARY PERSONNEL 9: 12 P M

Harish B said...

@saravanan, true but it is being positioned as a family vehicle and it will be rationally appealing to many consumers. @rakesh I hope suzuki will increase the comfort way forward once it starts getting consumer feedback 10: 2 2 P M

PALLAV PANCHOLI said... Harsh, i too think in the same way,I think in such a pice range and with assurance ( as name Maruti and Suzuki is there) Eeco will surely touch and eaily attract the middle and upper middle class families... as far as cannibalization is cocerned in my opinion in will not affect the sales of alto and omni as alto is in small car segment rather it will provide opportunity to the company to attact the families who didnt use maruti products and shifted to innova,tavera n others bcoz of lack of capicity in cars.. it will create a new market segment which is untuched so far(with this price band). regards Pallav Pancholi FMS MLSU 11: 5 1 P M

Gagan Arora said... Harsh, With Maruti EECO being priced between 2.6L to 3.1L isn't there a fear of the Car being converted into a car suitable for taxis (though absence of diesel variant will be a downside to such phenomena)? If this happens what will be the impact on brand of the car ? 11: 3 4 AM

Harish B said...

@pallav, eeco will create a new segment for sure , some cannibalization can happen. @gagan.. i don't see any problem in this brand being embraced by taxi owners as long as the positioning is clear. take the case of Indica , despite being popular in the taxi segment , lot of customers buy it because of value. same will happen to eeco. 11: 3 8 AM

maruti service center said... The most prominent car makers of india Maruti Suzuki has come up with all new Maruti Eeco replacing its own previously launched Maruti Versa 11: 5 7 AM POST A COMMENT Your Views are Important. Please share your views as comments. LINKS TO THIS POST: C RE ATE A L I NK << Home SUBSCRIBE TO MARKETING PRACTICE Subscribe in a reader Subscribe to Marketing Practice by Email

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HARI SH B K OCHI , K ERALA, I N DI A Marketing Evangelist in a Business School.Assistant Professor,Ex-advertisement sales person. Re-learning management at IIMK as a student.The views expressed are my own and not of the organisations I am associated with.All Trademarks and brands are the property of their respective owners. V I E W M Y C OMP L E TE P RO FI L E PREVIOUS POSTS Listerine : Pioneering a Category Brand Update : Idea Vanish : Trust Pink, Forget Stains Marketing Strategy : Don't Enter a Market Without ...

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Maruti does pricing coup with Eeco ET Bureau Jan 8, 2010, 05.57am IST NEW DELHI: Maruti Suzuki, India's largest carmaker, has priced its multi-purpose vehicle Eeco at Rs 1 lakh less than its forerunner Versa, taking the competition for lowcost vehicles head-on. Maruti said at the Auto Expo on Thursday that it will sell the 5-seater version of Eeco at 2.59 lakh (ex-showroom Delhi), and the 7-seater model at Rs 2.75 lakh. The company has invested Rs 60 crore in refurbishing Eeco with an Euro IV emission-compliant engine and upgraded aerodynamics, but managed to keep even the 5-seater AC version cheaper than Versa's basic price of Rs 3.63 lakh. The company, 54.2% owned by Japan's Suzuki Motor Corp, has embraced a pricecutting strategy to maintain its stranglehold in the domestic market. Maruti Suzuki, which sells one of every two cars on Indian roads, has dominated the market for nearly 30 years, but a burst of cheap models from its rivals is driving the company down the same path.

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Video reviews of carsCar reviews in HD video Features, price, specs and morewww.oncars.in Second Hand Cars for SaleHuge Range of Cheap 2nd Hand Cars For Sale in Delhi. 100% Free!Delhi.Tradusads.in/Cheap-Cars "We are offering the special price as many of our customers want to upgrade from our smaller van Omni to a bigger vehicle," Maruti Suzuki managing director and chief executive Shinzi Nakanishi said at the Eeco launch, adding that this is an invitation price and would be reviewed based on customer feedback. Maruti, looking to sell about 40,000 units of the Eeco annually, said the product has been refurbished by its Indian engineers without any help from the parent. "Maruti Suzuki engineers have specially developed the Eeco, its new powerful engine and a new transmission system to meet the diverse consumer aspirations looking for a vehicle that fits a large family and at the same time provides flexibility for dual use," Mr Nakanishi added. The company stopped the Versa's production a few months ago after it failed to create an impact in the industry. The new vehicle would be Maruti Suzuki's second car in the C-segment after the Omni.

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Maruti Suzuki Eeco is a perfect family car loaded with ample of features and technologies to beat the tough competition in the market. It is a series of development and advancement that took place since the birth of Maruti Suzuki Omni in India. Omni was certainly one of the most comfortable and spacious car for family outings and vacations. This with better features and innovations was replaced by the Versa in the year 2001 and now the more advanced Eeco is repeating the same success stories like Omni and Versa. Especially designed for Indian roads and Indian families, the Eeco is a five-door C-segment vehicle available in an option of 5 and 7 seater. The spectrum of colors available like bright red, silky silver, blue maze, midnight black, glistening grey, and superior white is also enticing. The exterior appeal with its spacious volume and trendy graphics makes it stand out on road. The interior is equally appealing and spacious offering satisfactory levels of comfort and luxury. Moreover, the dual tone shades of beige and grey enhance the ambience along with digital metre cluster featured with amber illumination. Then the ergonomic layout, ample legroom, and spacious sitting in both the front andrear enhance the level of comfort and mobility experience. The equipped air conditioner also comes with an outstanding ability to combat extreme climate changes in a desirable manner and offer a pleasant environment within.

When it comes to performance, the Eeeco is an exciting surprise with advanced technologies and unique features under the hood. All the variants are equipped with a powerful and responsive 1200cc BS IV compliant engine that delivers 73 bhp @ 6000 rpm. Further to that the use of high pressure injection system, knock sensors, compression ratios, crank sensors, and low friction pistons provide outstanding fuel efficiency and driving experience. Moreover, the innovative diagonal shift assistance has been incorporated for smoother gear shifting to ensure maximum driving pleasure. The advanced engine is mated to the bets-in-class suspension system suited for Indian roads to soak all imperfections and bumps. The front is equipped by a McPherson strut suspension with dual rate coil springs and the rear is fitted with 3-link rigid suspension with progressive rate coil spring to support superior handling, driving comfort, and handling. With all the functional features and best-in-class technologies, Maruti Suzukli Eeco is certainly one of the best green cars in the C-segment. Perfectly designed to create a work-life balance, the Eeco is a wonderful car